JGRA President, Trevor Heaven. (Gleaner Company photo)
The Jamaica Gasoline Retailers Association (JGRA) is warning consumers to brace for more increases in the price of fuel.
The warning comes as Jamaicans begin paying record high prices at the pumps effective Thursday.
Petrojam announced on Wednesday that it will hike the rates for all petroleum products to reflect increases in the Gulf Reference Price.
The state owned oil refinery has added $1.71 to each litre of E10-87 and E10-90 gasoline.
The increase takes those prices to their highest levels ever.
JGRA President, Trevor Heaven, says based on current trends in international oil markets, Jamaicans will not see an ease in fuel prices anytime soon.
“I am saying brace for more increases because this is not the end of it. Based on the trend internationally, if you look at WTI and Brent these are the markets that we have to watch and when you look at the trend over the last couple of months and going forward you can expect further increases,” Mr. Heaven said.
The Libyan effect
In the meantime, the price of Brent crude oil has hit US$111 per barrel, and US crude has also risen as worries persist about the unrest in Libya.
Markets are concerned that the trouble could worsen in key oil producing countries, affecting supplies and hitting growth.
US light sweet crude oil prices hit US$100 per barrel for the first time since October 2008, before settling up 2.8% at US$98.10 per barrel on Wednesday.
Libya is the world's 12th largest exporter of oil and the majority of its output goes to Europe.
Meanwhile, Total has became the latest European oil firm to act, saying it will suspend production in Libya.
Oil markets have been gripped by uncertainty this week as investors tried to work out the possible impact of the Libyan violence on supplies.
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